Investors don’t know if any money will be returned

Friday

Jan 25, 2013 at 3:15 AM

By Michelle Kingstonmkingston@fosters.com

DOVER — Investors are hoping there is some money out there.

On behalf of local residents, the state Securities Regulation Bureau is seeking restitution from Nick Skaltsis, 62, who was arraigned Thursday on 19 felony counts of theft for operating a fraudulent investment scheme. Between Feb. 4, 2011 and Sept. 9, 2012, Skaltsis issued promissory notes to 13 individuals raising at least $327,500. A total of $312,500 is still owed, plus interest, to these investors.

Unsure if he will ever see his money again, former state Rep. Donald Andolina, who invested $20,000 with Skaltsis in Aug. 2011, said he was pleased to hear that the bureau would work to attempt to return investments.

“They told me, whatever cash is there, it is more than likely that it will be distributed equally among us,” Andolina said.

Andolina believes his report to the Dover CrimeLine initiated the investigation, which the bureau stated began in August 2012.

Dover Police Chief Anthony Colarusso confirmed to Foster’s that Andolina’s report was the first notice of the alleged Ponzi scheme.

“That began the process,” Colarusso said, with Dover police and the Attorney General’s Office. Since then, he said, “We have been conducting interviews with those who fell victim ... as well as pursuing other related investigations that cannot be discussed that led to these charges.”

Colarusso said their main concern has been for those who invested.

“We worked very hard over the past several weeks with the Attorney General’s Office to gather enough solid information to levy charges against Mr. Skaltsis,” he said.

While currently hospitalized in Concord after attempting suicide in October, Skaltsis’ bail will be immediately converted to $300,000 cash only when he is discharged.

“With $300,000 cash bail, it doesn’t sound like he is going to be out any time soon,” Andolina said, adding that Skaltsis’ enterprises, bank accounts and properties have all been attached.

“If we don’t get anything, at least we did do something,” Andolina said. “He will never cheat anyone else. But it would be nice to get our money back.”

Former Dover Superintendent of Schools, John O’Connor, who invested $15,000 with Skaltsis in February 2010, said the cash must be out there somewhere, adding that there is no way Skaltsis could have spent $400,000 in a year.

“He just doesn’t live a lavish lifestyle,” O’Connor said.

“It’s a travesty,” O’Connor said in regards to the charges Skaltsis is facing. “I can imagine the investors still do not have their money and someone we’ve known and appreciated their friendship is facing criminal charges. I wouldn’t wish that upon anybody.”